Home Affordable Modification Program (HAMP®)...2016/12/30 · Help When You Owe More Than the Home is Worth Transition from Home Ownership AVOIDING FORECLOSURE MHA Offers Solutions

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Home Affordable Modification Program (HAMP®)

Training Presentation for Servicers Part 2 of 2

2Making Home Affordable | July 2016

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Agenda HAMP Part 1

Protections Against Unnecessary Foreclosure4

Overview1

Eligibility Criteria2

Pre-Screening3

Modification Underwriting7

Verification6

Permanent Modification9

HAMP Supporting Functions10

Trial Period Plan8

Resources11

Borrower Outreach 5

HAMP Part 2

Register at HMPadmin.com


Agenda HAMP Part 2


Verification6



Trial Period Plan8

Resources11


Verification

The Initial Package must be submitted by the borrower on or before December 30, 2016 to begin the evaluation process. The Initial Package has the following components:

Initial Package

Request for Mortgage Assistance (RMA)

• Borrower’s current financial information and monthly expenses.• Information on the principal residence and other owned properties.• Hardship Affidavit• Rental Property Certification• Dodd-Frank Certification• Government Monitoring Data (GMD)• Borrower/ co-borrower acknowledgement and agreement.

Evidence of Income Documentation must not be greater than 90 days old from the date the servicer receives it.

IRS Forms 4506-T/ 4506T-EZ or signed tax return

• IRS Form 4506-T is acceptable, however, the 4506T-EZ is recommended. • The signed copy of the tax return must be for the most recent tax year

and include all applicable schedules and forms.


VerificationRMA

Section Subject Description

Section 2 Hardship Affidavit Borrower(s) asserts that he or she is unable to continue making full mortgage payments and identifies one or more types of hardship.

Section 3 Principal ResidenceBorrower(s) provide information on principal residence even if request relates to a loan secured by a rental property.

Section 4Income Documentation

Borrower’s monthly household income, expenses, and assets. Examples of documentation to verify income are included.

Section 5Other Properties Owned

Borrower(s) provide information on all properties owned.

Section 6Rental Property Certification

Borrower(s) complete certification only when requesting modification of a loan secured by a rental property.

Section 7Dodd Frank Certification

Borrower(s) certify(ies) that he or she has not been convicted of felony larceny, theft, fraud, forgery, money laundering, or tax evasion in connection with a mortgage or real estate transaction within the last 10 years.

Section 8Government Monitoring Data

Borrower(s) provide data related to race, ethnicity and sex.


Verification

Borrower(s) must provide basic information on all of the properties that either person owns, regardless of whether they intend to apply for HAMP modifications on these properties. This information includes:

• If the property is vacant or rented

• Rental income of the property

• If the property is a second or seasonal home

RMA - Other Properties Owned

Vacation and seasonal rental properties are not eligible for HAMP.


Verification

If applicable, borrower and co-borrower certify:

• An intent to rent the property for at least five years from the permanent modification effective date and make reasonable efforts to market a vacant property.

• That he/she does not own more than five single family properties, in addition to his/her principal residence.

• That he/she does not intend to use the property as a secondary residence for at least five years from the permanent modification effective date.

RMA - Rental Property Certification

Note: Third party verification of the Rental Property Certification is not required unless it is necessary to resolve inconsistencies, required by the investor, or required

by internal servicing underwriting policies.


Verification

The Bureau of Consumer Financial Protection (CFPB) implemented regulations that require servicers to consider a borrower for all loss mitigation options contemporaneously. As such, borrowers are now required to submit a “Loss Mitigation Application” which includes:

• The Initial Package; and

• To the extent the Servicer requires, other documentation necessary to evaluate the borrower for HAMP and all loss mitigation options.

Impact of CFPB Regulations – Loss Mitigation Application


Verification

Servicers must:

• Make a judgment regarding whether or not the CFPB Regulations apply to a loan that is evaluated for one or more MHA options;

• Document their decision and the supporting analysis in the mortgage loan file; and

• Continue to evaluate borrowers for HAMP as the first loss mitigation option.

Impact of CFPB Regulations – Servicer’s Responsibilities


Verification

A written acknowledgement must be provided to the borrower within 5 business days of receipt of any component of the Loss Mitigation Application.

The acknowledgement must indicate whether the application is complete or incomplete.

The borrower’s eligibility must be determined within 30 calendar days of receiving the completed Loss Mitigation Application and one of the following must be sent:

• A TPP Notice, if the borrower is determined eligible; or

• A Non-Approval Notice, if determined ineligible.

Acknowledgement

Notices must be sent within 10 business days of the determination.


Verification

Send the borrower an Incomplete Information Notice that lists the additional documents needed to consider the application complete.

Include in the Incomplete Information Notice the specific date that the borrower must submit the missing documentation (No less than 30 days from the date on the notice).*

Exercise reasonable diligence in obtaining documents and information to complete a Loss Mitigation Application.

Incomplete Loss Mitigation Application

If a Servicer receives an incomplete Loss Mitigation Application, the following actions must be taken.

Evaluate the borrower for HAMP if all the required documentation/information is received to complete the HAMP evaluation.

*Note: Servicers may require a shorter period consistent with applicable law and in the best interest for the borrower to submit the missing information, and must

document this reason in the mortgage file.


Verification

If the servicer has exercised reasonable diligence in obtaining documents from the

borrower, but the Loss Mitigation Application remains incomplete for a significant period

of time without further progress from the borrower and the borrower has not provided

all of the necessary information needed for a HAMP evaluation, then the servicer may:

• Determine the borrower ineligible for HAMP

• Not preclude a borrower from future consideration for HAMP

• Servicers who have been in contact with a borrower but have not received the Initial Package on or before December 30, 2016 are no longer required to send a Borrower Notice informing the borrower that he or she cannot be considered for HAMP.

Incomplete Loss Mitigation Application - Ineligibility

Note: Servicers may not refer a loan to foreclosure unless and until the later of: 1) The 120th

day of delinquency; or 2) At least 30 calendar days have passed since the date the servicer sent the Incomplete Information Notice, or any subsequent request for information needed to

complete a Loss Mitigation Application, and provided the borrower’s application remains incomplete on the date of referral.


Verification

If a decision cannot be reached because additional documentation is required from a third party, within 30 days of receipt of a complete Loss Mitigation Application:

• Contact the borrower by mail, e-mail, or phone.

• Describe the cause of the delay.

• Provide an expected date for completion of the evaluation and HAMP decision (date cannot exceed 30 days from the date of contact).

Third Party Documentation

Note: If the documentation is not received from the third party after the specified date, contact the borrower every 30 days and provide a status update as well as an

expected resolution date.


Verification

When CFPB regulations apply, servicers:

• May be required to determine a borrower’s eligibility in absence of documentation required from third parties.

• Should exercise reasonable diligence to obtain any missing documentation within the 30 day evaluation period.

• Should not allow the borrower to be adversely impacted if they have submitted a complete Loss Mitigation Application, but information is missing from a third party.

Third Party Documentation – Impact of CFPB Regulations


VerificationServicer’s Verification Policy

Should specify the income documentation that will be required from the borrower to verify income.

Should include the circumstances under which additional documentation will be required.

Should include how discrepancies between the RMA, tax documents and income documentation will be reconciled.

Should describe how non-traditional income (underemployment, overtime, seasonal income, etc) will be calculated.

Should include the circumstances under which servicing personnel may exercise business judgment in calculating the borrower’s income, including how and where the business judgment is documented.

Cannot state that a servicer can rely solely on the borrower’s stated income.


VerificationIncome Types

•Must be

voluntarily

provided by the

borrower.

•Borrower must

provide:•Divorce decree,

separation agreement

or other legal

documents filed with

the court.

•Evidence of receipt of

payment – 2 most

recent bank

statements or deposit

slips.

MAY BE INCLUDED EXCLUDED

Wage/Salary Income

Benefit Income Support Income Other Earned Income

• Social security• Disability• Survivor benefits• Pension• Public assistance • Adoption assistance • Food stamps

• Alimony• Separation• Child support

• Bonus• Commission fees• Housing allowance• Tips• Overtime

Income tax refunds Non-borrower non-

household income Grants, including

mortgage assistance payments

Severance payments Unemployment

benefits Payments from Non-

MHA Unemployment Assistance programs

Documentation

• Two recent pay stubs (No more than 90 days old)

• Letters• Exhibits• Disability policy• Benefits statements • Evidence of receipt

of payment.

• Divorce decree• Separation

agreement • Two recent bank

statements or deposit slips.

• Employment contract

• Printouts documenting tip income.


Verification

Self-Employment Income

• Verified in accordance with the servicer’s Verification Policy.

• Borrower’s net profit, salary, or draw amounts must be included when calculating gross income

Rental Income

• Verified in accordance with the servicer’s Verification Policy.

Non-borrower Household Income

• Person must reside in the borrower’s principal residence and support the borrower’s ability to pay the mortgage debt.

Other Income Types

Servicers who obtain a completed IRS Form 4506-T or 4506T-EZ, but have not received a signed copy of the borrower’s most recent tax return, are required to use the IRS

Form to obtain a transcript of the tax return for those borrowers with self-employment income or rental income.


Verification

If the borrower is using rental income from the rental portion of the principal residence, calculate rental income at:

• 75% of the monthly gross rental income

• 25% of the monthly gross rental income considered as vacancy loss and maintenance expense.

If the borrower is using rental income from properties other than the primary residence, calculate rental income at:

• 75% of the monthly gross rental income, reduced by the PITIA payment.

Rental Income Calculation for Owner Occupied Loans

Rental income should not be included in a borrower’s monthly gross income if there is currently no rental income due to vacancy.


Verification

A borrower displaced from his or her principal residence may be eligible for a HAMP Tier 1 modification if the borrower:

• Occupied the property as a principal residence immediately prior to the displacement;

• Intends to re-occupy the property in the future; and

• Does not own any other single family real estate.

Rental Income Calculation – Displaced Borrowers

If Displaced Borrower: Then:

Rents out property from which he/she was displaced.

The monthly gross rent charged by the borrower x .75% should be added to the

borrower’s gross monthly income.

Is paying rent in a new location and is requesting a modification of principal residence.

The rent should be added to the borrower’s total housing expense.


Verification

Calculate monthly gross income by:

• Adding net income of rental property to the borrower’s gross income from all other sources.

• Including income from all borrowers, if there is more than one borrower on the mortgage.

Calculate total housing expenses by:

• Adding any net rental loss on the property to the monthly PITIA of the borrower’s principal residence.

• Adding the monthly post-modification PITIA of the subject rental property to the monthly PITIA of the borrower’s principal residence, if there is no rental income.

• Adding the monthly PITIA of the principal residences of all borrowers, if there is more than one borrower on the mortgage.

Rental Income Calculation for Rental Property


VerificationRental Income Calculations

Item AmountCalculate Subject Property

Net Cash Flow

EXAMPLE 1

Positive Cash Flow

Primary Residence Housing Expense of all borrowers/co-borrowers

$1500

= ($1,400 * 75%) = $1,050

= $1,050 - $1,000 = $50

$1500 / ($4500 + $50) = 32.97%

Subject Property Housing Expense $1000

Subject Property Gross Rental Income $1400

Borrowers Monthly Gross Income $4500

EXAMPLE 2

Negative Cash Flow

Primary Residence Housing Expense of all borrowers/co-borrowers

$1500= ($900 * 75%) = $675

= $675 - $1,000 = ($325)

($1500 + $325) / $4500 = 40.56%




EXAMPLE 3

Not Receiving Rental Income

Primary Residence Housing Expense of all borrowers

$1500

= ($0 * 75%) - $1,000 = ($1,000)

($1500 + $1000) / $4500 = 55.56%





Agenda HAMP Part 2


Verification6



Trial Period Plan8

Resources11


Modification Underwriting

Borrower’s monthly mortgage payments must include escrow amount, unless prohibited by applicable law.

Prior to the trial period:

• Perform an escrow analysis for taxes and insurance

• Establish an escrow account for borrowers who do not have one

• Determine the exact escrow payment required

Escrow Accounts and Evaluation

Note: Capitalize any taxes and insurance payments that may come due during the trial period.



Escrow Analysis Example

Homeowners Insurance = $500.00

• 1st Installment Due – July

• 2nd Installment Due - December

County Taxes = $2,000.00

• Due – August

• Borrower Analysis for modification – May

• Potential Trial Start – June

June Trial 1 July Trial 2 Aug Trial 3

1st Tax Installment $1,000.00

Homeowners Insurance $500.00

Amounts Due During the Trial

$1,500.00

Amounts to Capitalize if applicable by law

$1,500.00

Homeowners Insurance = $500.00

Take steps to eliminate any shortage for

future payments.



Goal is to reach target monthly mortgage payment ratio of 31%!

Includes Principal Reduction Alternative (PRA) for loans with a MTMLTV ratio of 115% or higher!

Standard Modification Waterfall – HAMP Tier 1

Step 4Principal Forbearance

If necessary, forbear principal.

Step 1Capitalize

Capitalize accrued interest, out-of-pocket servicing expenses.

Step 2Reduce the Rate

Reduce the borrower’s current rate to as low as two percent.

Step 3Extend the Term

Extend the term without exceeding 480 months.

Alternative Modification Waterfall – HAMP Tier 1

Step 2PRA

Step 1Capitalize

Step 3Reduce the Rate

Step 4Extend the Term

Step 5Principal

Forbearance



Borrowers may receive more favorable modification terms than required by HAMP Tier 1. Deviations from the Standard Waterfall must be noted in the servicing system or mortgage file.

Acceptable deviations may include:

• Interest rate does not increase after five years or is reduced to less than 2.0 percent.

• Additional principal forbearance is substituted for term extension.

• Reducing the monthly mortgage payment ratio lower than 31%.

Incentive payments will be based on only the terms that reflect the Standard Modification Waterfall and the target monthly mortgage payment ratio!

Standard Modification Waterfall – Acceptable Deviations


Standard and Alternative Modification WaterfallsHAMP Tier 2

1) Modified principal and interest payment is less than or equal to the pre-modification monthly principal and interest payment in effect at the time of HAMP Tier 2 consideration.

2) Post-modification DTI falls in the Expanded Acceptable DTI Range (10% - 55%, inclusive).

Affordability Requirements

If pre-modification MTMLTV ratio is greater than 115%.Forbear or forgive an amount equal to the lesser of:

• A post-modification MTMLTV ratio of 115%• 30% of the post-modification UPB.

Principal Forbearance/ Forgiveness

PMMS Rate + Risk Adjustment (expressed in basis points).* Interest Rate Adjustment

480 months and re-amortize from the Data Collection Date.Term Extension

Outstanding UPB + Accrued Interest + Out-of-pocket Servicing Expenses.Capitalization

Principal Forbearance is replaced with PRA.Alternative Modification Waterfall

Steps performed

by NPV Model

Calculatedby NPV Model

*Effective Jan. 1, 2015 the risk adjustment is -50bps. If the

PMMS rate is 4%, the Tier 2 rate

would be 3.5%.



The NPV model will return NPV results for both HAMP Tier 1 and HAMP Tier 2, as well as calculate the results for both Waterfalls, if applicable, for HAMP Tier 2.

NPV – Single Evaluation Process

Occupancy Eligibility Tier 1 Result Tier 2 Result Offer

Owner-Occupied, HAMP Tier 1 Eligible

Positive Positive Tier 1

Positive Negative Tier 1

Negative PositiveTier 2

Tier 1 (optional)

Negative Negative Tier 1 or Tier 2 (optional)

Rental Property or other HAMP Tier 1 Ineligible

N/A Positive Tier 2

N/A Negative Tier 2 (optional)



Non-Approval Notice

Reason(s) for Ineligibility Listed in Non-Approval Notice

Ineligible BorrowerInsufficient Monthly Payment

ReductionTrial Plan Default

Ineligible Mortgage Minimum Required Reduction No Change in Circumstance

Investor Guarantor Not ParticipatingPost Modification DTI Outside of

Acceptable RangeDodd Frank Certification Non-

Compliance

For Loans Prior to June 1, 2012

Property Not Owner Occupied Excessive Forbearance

Please note: This is not a complete listing of all of the reasons included in the Non-Approval Notice. A full listing can be found in Exhibit A of the MHA Handbook.

Sent to all borrowers not approved for a HAMP TPP or permanent modification and should include:

• Primary reason(s) for non-approval; • A description of other foreclosure alternatives and the steps required for

consideration of these alternatives.


Agenda HAMP Part 2


Verification6



Trial Period Plan8

Resources11


Trial Period Plan

• If a borrower qualifies for HAMP Tier 1 or HAMP Tier 2, a TPP must be offered.

• The TPP lasts for three months and includes these important components:

o TPP Notice

o TPP Effective Date

o TPP Payments

Components

Servicers should design procedures such that trial period plans can be reasonably converted to a permanent modification no later than December 1, 2017.


Trial Period Plan

• Describes the terms and conditions of the TPP and outlines the required payment due dates.

• Borrower is not required to sign or return the TPP Notice.

• A copy must be retained in the mortgage file and include the date the TPP Notice was mailed to borrower.

• TPP Notice is transmitted on or before the 15th calendar day = TPP Effective date of first day of the next month. Example: Transmit date June 5th = TPP Effective Date July 1st.

• TPP Notice is transmitted on the 16th calendar day or later = TPP Effective Date is the first day of the second month or (following month, if borrower agrees). Example: Transmit date June 17th = TPP Effective Date August 1st or (July 1st, (with borrower’s consent).

Notice

Effective Date

Servicers must include a notice regarding the financial counseling services available toborrowers entering a TPP on or after March 1, 2014, as well as the contact information for the

servicer’s HUD-approved housing counseling agency.


Trial Period Plan

• Includes PITIA.

• A payment must be received on or before the last day of the month in which the payment is due.

• Receipt of the first payment is evidence of borrower acceptance of the TPP Notice.

• Funds received, but not equal to a full contractual payment, should be held as “unapplied funds” in a Tax and Insurance custodial account.

• At the end of the trial period, any unapplied funds that do not constitute a full contractual payment should be applied against the amounts capitalized.

• Failure to make timely payments, results in a failed TPP.

Payments


Trial Period Plan

• Borrowers who file for bankruptcy while in a TPP cannot be denied a permanent modification on the basis of that bankruptcy.

• Work with borrower or borrower’s counsel to obtain any court and/or trustee approvals.

• The TPP should be extended to accommodate delays due to obtaining court approvals, but not required to exceed an additional two months, for a total of five months.

• Borrowers granted a TPP extension must continue to make a trial period payment for each month of the TPP, including the extension period.

Borrowers in Bankruptcy


Trial Period Plan

For borrowers in active Chapter 13 bankruptcy who are determined to be eligible for HAMP, the TPP may be waived and the borrower may be offered a permanent modification, so long as the following conditions apply:

• The borrower makes all post-petition payments on the mortgage loan due prior to the effective date of the Modification Agreement, and at least three of those payments are equal to or greater than the proposed modified payments;

• The modification is approved by the bankruptcy court, if required;

• The TPP waiver is permitted by the applicable investor guidelines.

Chapter 13 Waiver of TPP


Agenda HAMP Part 2


Verification6



Trial Period Plan8

Resources11


Permanent Modification

The borrower’s permanent modification will become effective when:

• The borrower has satisfied all of the TPP requirements.

• The borrower and the servicer have signed the Modification Agreement and a fully executed copy of the Modification Agreement is returned to the borrower (no later than 30 calendar days after receipt of the agreement executed by the borrower).

• The Modification Effective Date provided in the Agreement has occurred.

Modification Agreement

Note: 1. The Modification Effective Date must be on or before December 1, 2017.2. All borrowers that signed the original loan documents must sign the Modification Agreement, unless they are deceased or divorced. Discretion may be used to excuse a co-borrower from signing the Modification Agreement due to: mental incapacity, active military deployment, or contested divorce.



• If a borrower makes the final trial payment after the payment due date, but before the end of the month when it’s due, the Modification Agreement may be sent to the borrower on the first day of the second month following the trial period month.

• If elected, the borrower will not be required to make an additional trial period payment during the month (interim month) in between the final trial period month and the month in which the modification becomes effective.

• Neither borrower nor servicer will receive incentive for the interim month, if the payment is not made.

Effective Date Option

Note: There should be attempts to contact borrowers who do not return the executed Modification Agreement by the end of the month in which the first payment is due.

Borrowers who do not return the Modification Agreement by such time may be considered ineligible for HAMP and sent a Non-Approval Notice.



The following action must be taken when a borrower has successfully completed a TPP and is not converted to a permanent modification in a timely manner:

• Offer the borrower a permanent modification no later than 60 days after discovery of the error;

• Ensure that the terms of the modification are the same as if the conversion took place in a timely manner.

Delayed Conversion

Note:1. The Modification Effective Date must be on or before December 1, 2017.2. Borrowers who successfully complete the TPP, but stopped making payments because of a delayed conversion are still eligible for a permanent modification.



• When a borrower misses three full monthly payments, the loan is no longer considered to be in “good standing” and the servicer must work with the borrower to cure the delinquency.

• For borrowers who default on a HAMP Tier 1 trial period plan on or after December 31, 2016, servicers may, but are not required to, automatically evaluate the borrower for HAMP Tier 2 within 30 calendar days of default prior to sending a Non-Approval Notice unless:

o The servicer has reason to believe that the income documentation or property valuation used to provide a decision for the borrower is no longer accurate.

• If the information is no longer accurate, the servicer may not evaluate the borrower for HAMP Tier 2 and must note the reason in the mortgage file or servicing system.

• A loan permanently modified under HAMP may be re-modified, without regard to the loss of good standing, provided that either:

o The borrower has experienced a change in circumstance; or

o At least 12 months have passed since the HAMP Modification Effective Date.

Previous HAMP Permanent Modification

HAMP Tier 2 permanent modifications that lose good standing are not eligible for another HAMP Tier 1 or Tier 2 modification.



Servicers must provide notice to borrowers of all interest rate step-ups that will occur as HAMP Tier 1 modifications reach the end of their initial five-year terms. The notice must include, among other items, the following information:

• A statement that the interest rate will increase by 1% per year until it reaches a cap and then afterwards, the rate will be fixed for the remaining life of the loan.

• The amount and effective date of the interest rate increase.

• The amount and due date of the borrower’s first increased monthly payment at the new adjusted level.

• A table with the new payment schedule.

• Contact information for (1) the servicer and (2) the HOPE™ Hotline or the servicer’s HUD-approved housing counselingagency, if the servicer is subject to the financial counseling requirement.

Borrower Notice of Interest Rate Step-Ups

Servicers must provide notice to HAMP borrowers at least 120 calendar days, but no more than 240 calendar days, before the first payment is due at the first adjusted level.

Refer to the MHA Handbook for a complete listing of items to include

in the notice.



For HAMP evaluations conducted on or after January 1, 2015:

• If the interest rate step-up is scheduled within 120 days of the HAMP evaluation, the homeowner’s HAMP eligibility will be based on the new interest rate and monthly mortgage payment following the rate step-up.

• If the interest rate step-up is scheduled more than 120 days after the HAMP evaluation, the homeowner’s eligibility will be based on the current scheduled monthly mortgage payment and interest rate in effect at the time of evaluation.

Evaluation of Borrowers with Interest Rate Step-Ups


Agenda HAMP Part 2


Verification6



Trial Period Plan8

Resources11


HAMP Supporting Functions

• Provides loan-level data to the Program Administrator detailing the evaluation, TPP and servicing of a loan modified under HAMP.

• HAMP Reporting tool and additional information can be accessed at HMPadmin.com.

• Once a HAMP permanent modification has been set up, borrower payment activity must be reported on a monthly basis.

• Transaction types: Trial Setup, Additional Data Requirements (ADR), Official Modification, and Loan Activity.

HAMP Reporting Tool

Official Monthly Reporting (OMR)



• Report a “full file” status report to the credit reporting agencies.

• If the borrower was current prior to the TPP report, use Special Comment Code ‘AC’.

• If the borrower was delinquent, report the Account Status Code that reflects the appropriate level of delinquency and report Special Comment Code ‘AC’.

Credit Bureau Reporting - Trial Period

• All borrowers who receive a permanent modification are reported using the ‘CN’ Special Comment Code.

• If the Modification Effective Date has passed, corrections to prior months if the AC code was previously reported is not required.

• Comply with reporting required by the mortgage insurer for loans modified under HAMP.

• Collect premiums and maintain mortgage insurance on modified mortgages.

Credit Bureau Reporting - Post Modification

Reporting to Mortgage Insurers


HAMP Supporting FunctionsCompensation

• Completed Modification Incentive• Pay for Success Incentive for HAMP Tier 1

Servicers

• Pay for Performance Incentive for HAMP Tier 1 and Tier 2 (principal balance reduction)

Borrowers

• Payment Reduction Cost Share• PRA• Current Borrower Incentive (not applicable for HAMP

Tier 2 modified loans secured by rental properties)• Home Price Decline Protection (HPDP)

Investors


• All transactions must be reported in the HAMP Reporting Tool before May 1, 2018

following the April 2018 reporting cycle.

• Incentives will only be paid for permanent modifications (including those paid with

respect to GSE Loans permanently modified under GSE HAMP) reported before May 1,

2018.

o Loan modification applications for GSE HAMP must be submitted on or before

December 30, 2016.

• Any permanent modification that is completed by December 1, 2017 but not reported

before May 1, 2018 will not receive incentive payments under MHA.

• For Non-GSE loans, the servicer must honor all terms associated with the transaction,

including payment of incentives to the borrower, servicer or investor.


Compensation Deadlines



An Escalated Case involves allegations from a borrower or their third party advocate that:

1) The borrower was not properly assessed for an MHA program;

2) The borrower was inappropriately denied for one or more MHA program(s); or

3) The servicer took inappropriate foreclosure actions.

Escalated Cases may be received from several entities and should be handled in the same manner. These entities include:

• The borrower

• HAMP Solution Center (HSC)

• MHA Help

Escalations

Definition

An escalated case must

be resolved within 30

calendar days from the

date the inquiry was

received.

NOTE: MHA Help and

HSC will no longer

accept new cases nor

escalate new cases to

servicers effective

December 1, 2017.

Any previously

escalated cases must

be resolved by May 1,

2018.

Source


Servicer Integration TeamHAMP_Integration_Team

@fanniemae.com

HAMP Solution [email protected]

Resources

• MHA Programs

• Learning Center

• Resources

• News

• Contact Us

www.HMPadmin.com

Additional Resources


ConclusionHAMP Part 1

Protections Against Unnecessary Foreclosure4

Overview1

Eligibility Criteria2

Pre-Screening3


Verification6



Trial Period Plan8

Resources11

Borrower Outreach 5

HAMP Part 2

Register at HMPadmin.com


Thank You

Discussion/Questions

Documents

Home Affordable Modification Program (HAMP®)...2016/12/30 · Help When You Owe More Than the Home is Worth Transition from Home Ownership AVOIDING FORECLOSURE MHA Offers Solutions